RELATIONSHIP BETWEEN COMPETITION LAW AND INTELLECTUAL PROPERTY LAW

Abstract

Competition law regulates the market to ensure that one or more individuals or firms do not have an economic advantage in form of a monopoly which stifles competition by conferring exclusive powers on them to carry on a particular business or trade thereby resulting in high cost of goods and services. Competition law is an essential tool in safeguarding the free market against practices which distorts the market. It is necessary in preventing all forms of monopolistic practices, ensuring optimum allocation of resources which in turn ensures that consumers are rewarded with fair prices for goods and services. Intellectual property on the other hand is an aggregate of creative and innovative works and ideas emanating from the human mind. In order to ensure that these rights are protected, laws are enacted by various law-making bodies which assign these rights to individuals or organizations who are the inventors of these ideas conferring them with exclusivity on the said inventions. The nature of IPR is akin to a monopoly owing to its characteristics that excludes competitors from replicating the patented product whereas competition law prohibits the wielding of monopoly powers by firms. Competition law and IPR are drivers of innovation and technological advancement which plays a major role is the establishment of a free market economy and also of immense benefit to the consumers. Both competition law and IPR ensure that resources are effectively allocated in the relevant market. Competition law and IPR harmoniously support the creation of novel products and services as well as technological advancement. In most cases, consumer welfare is enhanced through the development of innovative goods and services or the improvement of the quality of already existing ones which are readily available and affordable. In Nigeria, the FCCPA prohibit monopoly, abuse of dominant position and some other conduct which is the preoccupation of IPR. The provision of FCCPA is a great stride in regulating the free market, however there needs to be guidelines in place which govern the extent of the application of these two seemingly conflicting areas of law; competition law and IPR.